BIR Ruling [DA-528-98]

November 25, 1998 BIR RULING [DA-528-98] Sisters of Charity of Our Lady Mother of Mercy 295 E. Rodriguez Blvd. Quezon City Attention: Sr . Nora Hayes Gentlemen : This refers to your letter dated November 28, 1998 requesting for an exemption from the payment of donor's tax prescribed under Section 101(A)(3) of the Tax Code of 1997 on the donation of a parcel of land with improvements thereon by Philippine Franciscan Province of San Pedro Bautista in favor of Sisters of Charity of Our Lady Mother of Mercy. It appears that the donor is the registered owner of three (3) parcels of land situated in Barrio Bayanbayanan, Marikina City, together with the building and other improvements thereon, covered by Transfer Certificate of Title Nos. 156022, 156021 and 161433 issued by the Register of Deeds of Marikina City. In reply, please be informed that inasmuch as the donee is a religious institution, the aforesaid donation is exempt from the payment of donor's tax pursuant to Section 101(A)(3) of the Tax Code of 1997, subject to the condition that not more than 30% of said gift shall be used by the donee for administration purposes. Moreover, the Deed of Donation executed for the purpose is not subject to documentary stamp tax. However, the acknowledgment on said deed is subject to the documentary stamp tax of P15.00 imposed under Section 188 of the Tax Code of 1997. (BIR Ruling No. DA-481-98 dated November 9, 1998) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. cdtech Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)